From 2017 to the first quarter of 2018, the world economy has been growing well because private consumption increased as the labor market recovered in many regions, and the world trade recovered from demand of major countries (USA, European Union, Japan, and China). As a result, the economy of export-oriented countries has improved. Moreover, the fiscal policy plays an important role in driving economic growth. Regarding Thailand, Thai economy has expanded by 3.9 percent in the previous year. Even though the export increased, domestic spending still slowed due to the reason of high household debt and declining agricultural income.
From the viewpoint of the Board of Directors, the overview of economy in the past was in good direction. There were several factors affecting the overall performance, such as the recovery of global economy that stimulates the demand for the Company's products from overseas markets, and the promotion of investment in infrastructure in new growth-countries in ASEAN Economic Community (AEC). As a result, the heat/coolant insulation business is explicitly benefiting. The foreign exchange rate also caused the pressure on the Company’s operation, but we applied the Natural Hedge Policy to minimize the impact of the foreign exchange rate fluctuation, and the raw material price that is increased from petrochemical price hike. However, the price has been continuously fluctuating; therefore, the Company manages this risk from the fluctuation of raw material price by signing the derivatives contracts, by that some cost changes can be passed on to the customers. However, the Company’s strategy is to expand the overseas market, to focus on developing the innovative products, to develop the production technology in order to reduce cost and increase the production efficiency, and to invest in developing new products so that the business can grow well.
Regarding the turnover of the year 2017/2018, the total revenue from sales was 9,607.1 Million Baht, increased by 3.5%, the total net profit was 993.2 Million Baht, decreased by 28.2%, compared to the previous year. This is because the revenue in the plastic packaging business is decreased due to the slower-than-expected domestic consumption and the increasing competition of the plastic packaging industry, including the Company’s expenses on the overseas business of the auto parts business, which is an investment to support future growth. In this regard, the Board of Directors has resolved to pay an interim dividend for the first six-month period of 2017/2018 at the rate of 0.10 Baht per share, totaling 280 million Baht. The dividend was paid to shareholders on 8thDecember 2017, and the resolution was passed at the Annual General Meeting of Shareholders for the year 2017/2018 to approve the annual dividend payment of 0.15 Baht per share, totaling 420 Million Baht, which is 71.4% of the net profit (payout ratio).
The Company's success is to be a leader in innovation, and to be a world-class manufacturer and distributor for sustainable growth.
Creative Innovation Organization
The Company well recognizes that innovation is an important key to the Company’s sustainable growth and able to adapt to changes. In addition to the internal research and development, Aeroklas Co., Ltd., cooperated with King Mongkut’s University of Technology Thonburi, organized Automotive Parts Innovation Contest under the topic "Aeroklas 4.0 World Pickup Truck Accessory". This project allowed students and other general people to show their capability in creating the innovation in order to encourage the learning about working in the industry sector and to create future entrepreneurs. Furthermore, Aeroklas will bring the award-winning product to continue building the prototype as well.
Doing business in the global market
In the last year, the Company’s overseas businesses have invested in many business types to support the growth, for example, Aeroflex USA Inc. has increased the production capacity by using the high-speed machines to support the demand of market, such as office buildings, industrial buildings, and residences in the United States. Besides, Aeroklas Australia Pty.Ltd. has acquired Flexiglass Challenge Pty. Ltd. which operated the automotive accessory retail shop for both two-wheel and four-wheel pick-up truck and SUV in Australia with more than 100 distributors and dealers, including its 5 branch stores. These investments aimed to increase the distribution channels and the opportunity to expand the customer base. This is a great way to increase revenue and profitability in the future. Moreover, TJM Products Pty,Ltd., Australia, has launched its 2 own branches in Perth and Brisbane.
To create sustainable growth
The growth of Eastern Polymer Group Public Company Limited (EPG) relies on the Company’s vision to grow with creative innovation in developing the product quality for the benefit of society and better living, and operate under the business expansion strategy on the global stage to create continuous success for the Company.
On behalf of the Board of Directors, we would like to thank all of our employees, business partners, customers, shareholders and supporters in all areas for their support and trust in the Company, and please be confident that the Company will operate business based on the corporate governance and sustainable growth, and take into account the interests of all stakeholders.
Mr. Vachara Tuntariyanond
(Chairman of the Board)
Dr. Pawat Vitoorapakorn
(Chief Executive Officer)